Connecticut General Assembly Passes Bill Authorizing Domestic Insurers to Divide

Both houses of the Connecticut General Assembly have passed HB 7025, which would create a new legal process whereby a Connecticut domestic insurer could divide into multiple insurers and allocate assets and obligations to the “new” insurer. The new insurer would become a legal successor to the original insurer. HB 7025 requires dividing insurers to develop a division plan before effectuating a division. The plan must comply with requirements specified in the bill and be approved by the insurance commissioner and the dividing insurer. Before HB 7025 becomes law, it must be signed by Governor Malloy.